OAPs race with death to amnesty finish line

HMRC’s olive branch on secret offshore accounts is leading wealthy elderly individuals to fast-track efforts to clarify their tax affairs in case they die before their disclosures are signed off.

Sue Holmes, head of tax investigations at Smith & Williamson, said elderly people, some in their early 90s, had been looking to expedite the process of disclosing undeclared income held overseas prior to the March 12 cut-off and paying the appropriate tax.

“We’re looking to move those cases forward before the inevitable happens,” said Holmes. “The taxman has given themselves a bit longer compared to the last amnesty, but the downside is there’s a longer time between putting in your disclosures and getting your disclosures through.”

The Liechtenstein Disclosure Facility runs alongside the New Disclosure Opportunity, and advisers believe there is a lot more interest in the LDF from older people ­ because of its more favourable terms.

“There’s a lot of old money that has been inherited. Some of these involve estates where the funds have been held overseas and haven’t been declared,” said one leading tax adviser. “The capability to move things through Liechtenstein is very appealing.”

However, advisers urged people to be proactive in making disclosures before the 30 November notification deadline. “There appears to be a trickle rather than a deluge,” said Mike Down, Baker Tilly’s national head of tax risk and investigation management.